Final answer:
The correct statement regarding a market economy is that freedom of choice and enterprise are essential elements of the market system, with market forces largely determining production and allocation of resources, though efficiency does not imply equity in distribution.
Step-by-step explanation:
The correct statement among the provided options is D: Freedom of choice and enterprise are essential elements of the market system. Within a market economy, consumers and producers have the freedom to make choices that dictate what goods are produced, how they are produced, and at what quantities, subject to market forces of demand and supply. Governments may have some role, primarily in enforcing private property rights, but decisions about production and resources are largely made by individuals and firms. In contrast to a command economy where a central body makes economic decisions, a free market economy relies on the choices made by participants within the market.
Statements that a perfectly competitive market will have both productive and allocative efficiency take into account that buyers and sellers should be well informed, and markets should be competitive with minimal externalities. However, efficiency does not necessarily translate to equitable distribution of wealth or access to goods and services, which is influenced by the income distribution of the society.